Bitcoin has fallen below $100,000 for the first time in months.

As of publishing time on Friday, Bitcoin has been hovering around the $94,000 to $97,000 price range. That price point is the lowest Bitcoin has seen since early May and a big drop from the more than $126,000 all-time high that Bitcoin reached just early last month.

What's going on here?

It's important to note that cryptocurrency is extremely volatile and can experience unexplained ebbs and flows based on a number of factors. A major factor likely driving this latest Bitcoin drop is general sentiment about the economy. 

The stock market is also down right now, and historically the cryptocurrency markets follow Wall Street. In addition, some analysts are citing the expectation that the Federal Reserve will cut rates in December. As a result, institutional buying has trailed off in recent weeks.

Crypto whale selloffs are often a significant factor when the crypto market suddenly goes down. This time, however, a lot of holders are reportedly selling off Bitcoin, not just the whales.

According to new data from cryptocurrency analytics company CryptoQuant, long-term Bitcoin holders have sold around 815,000 BTC over the past 30 days, the highest activity since early 2024.

Bitcoin has been riding high since President Donald Trump's election in 2024. The crypto lobby came together to back his campaign, and it paid off. The Trump administration has rolled back crypto regulations, appointed cryptocurrency industry-approved officials, and ended investigations into crypto-related crime. For example, just last month, Trump pardoned the founder of cryptocurrency exchange Binance, who was sentenced to prison for money laundering.

However, a relatively small number of people actually partake in cryptocurrency trading. In turn, this means that the actions of long-term holders and crypto whales can really sway the market, and this fact — combined with that lackluster market sentiment — is likely what we're seeing now.